OKC Standard

Washington, D.C. – Congressman Josh Brecheen, along with 46 other Republicans, made a firm stand against H.R. 7024, known as the "Tax Relief for American Families and Workers Act of 2024." While he recognized the positive aspects of the bill, such as the business deduction and depreciation changes, Congressman Brecheen expressed his concerns about the inclusion of low-income individual welfare benefit expansions, which he believed would also benefit illegal aliens.

In his statement, Congressman Brecheen stated, "I support the business deduction and depreciation changes in this bill, unfortunately, the low-income individual welfare benefit expansions (eligible to illegal aliens) that were added to obtain President Biden’s and Senate Democrats’ support made this a bad deal." He further emphasized his disapproval of the bill's weakening of work requirements and the predicted $155 billion in new deficits over the next 20 months, exacerbating the ongoing inflation crisis.

The influential conservative think tank, the Heritage Foundation, shared their analysis on H.R. 7024 in their report titled "The Tax Relief for American Families and Workers Act Light on Tax Relief and Heavy on Welfare Expansion." According to their findings, the bill provides minimal tax relief for working families, with nearly 91.5 percent of the "family benefits" being directed towards cash welfare payments to families who do not pay federal income taxes. The report also highlighted that the bill includes $30.6 billion in new welfare cash payments, which could exceed $140 billion if extended over ten years.

The report from the Heritage Foundation further noted that the bill aligns with President Biden's goals of increasing cash welfare payments for single parents and weakening work requirements. It suggests that this bill sets the stage for future compromises that would fully enact President Biden's "child allowance" program, marking a significant political and policy victory for the president.

One area of concern highlighted by the report is the expansion of welfare payments for illegal aliens. Under current law, illegal aliens who have children born in the U.S. can claim welfare benefits from the Additional Child Tax Credit (ACTC). However, the Ways and Means bill seeks to expand these welfare payments to millions of individuals currently in the U.S. illegally and potentially millions more in the future.

The Heritage Foundation's analysis also pointed out the bill's impact on deficits. While the Joint Committee on Taxation (JCT) estimated a 10-year deficit impact of only $399 million, this figure masks the uneven distribution of deficits. According to the JCT, the bill would result in increased federal deficits of $117.5 billion in FY 2024 and an additional $37.8 billion in FY 2025. These deficits are expected to contribute to inflation and rising interest rates, as the government injects new money into the economy, divorced from real increases in productivity, and crowds out private borrowing. In total, the Tax Relief for American Families and Workers Act is projected to increase near-term federal deficits by $155.3 billion over the next 20 months.

Congressman Josh Brecheen's vote against H.R. 7024 reflects his concerns about the bill's expansion of welfare benefits for low-income individuals, including illegal aliens. As the bill moves forward, it remains to be seen how these concerns will be addressed and whether any amendments will be made to address the potential effects on the economy and the inflation crisis.